Transocean Ltd (RIG): Today's Featured Energy Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Transocean ( RIG) pushed the Energy industry lower today making it today's featured Energy laggard. The industry as a whole closed the day up 1.6%. By the end of trading, Transocean fell 77 cents (-1.7%) to $45.37 on heavy volume. Throughout the day, 8.2 million shares of Transocean exchanged hands as compared to its average daily volume of 3.5 million shares. The stock ranged in price between $45.14-$46.44 after having opened the day at $46.39 as compared to the previous trading day's close of $46.14. Other companies within the Energy industry that declined today were: Geokinetics ( GOK), down 10.9%, Energy Services of America Corporation ( ESA), down 6.7%, Rose Rock Midstream ( RRMS), down 4.3%, and Houston American Energy Corporation ( HUSA), down 4%.
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Transocean Ltd. provides offshore contract drilling services for oil and gas wells worldwide. It offers deepwater and harsh environment drilling, oil and gas drilling management, and drilling engineering and drilling project management services. Transocean has a market cap of $16.84 billion and is part of the basic materials sector. Shares are up 22.1% year to date as of the close of trading on Wednesday. Currently there are 16 analysts that rate Transocean a buy, no analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates Transocean as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

On the positive front, Royale Energy ( ROYL), up 32.9%, GeoGlobal Resources ( GGR), up 19.9%, GMX Resources ( GMXR), up 9.2%, and KiOR ( KIOR), up 7.1%, were all gainers within the energy industry with Schlumberger ( SLB) being today's featured energy industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the energy industry could consider Energy Select Sector SPDR ( XLE) while those bearish on the energy industry could consider Proshares Short Oil & Gas ( DDG).

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